CABOTAGE
LAWS EASED FOR CRUISE LINERS
It's a smooth sail from now on for foreign luxury cruise liners
that choose India as a destination. To promote cruise tourism,
in the absence of Indian flags sailing in this segment, the
shipping ministry has altered cabotage laws to allow foreign
flag cruise vessels calling at more than one Indian port to
sail without obtaining permits or licences from the director-general
shipping.
Union shipping minister
Shatrughan Sinha said that this facility had been granted
for five years, by activating Clause 3 of Section 407 of The
Merchant Shipping Act.
Mr Sinha has also given
the go-ahead for the reduction of vessel-related charges for
cruise ships by 50%. "The 50% reduction is mandatory,
though individual ports can further reduce charges below this
under competitive pressures if they so desire," he added.
Permission to set up high standard international cruise terminals
at Mumbai, Cochin, New Mangalore and Tuticorin has also been
given by the minister to respective port trusts.
Data with the shipping
ministry shows that 12,424 tourists were carried in cruise
vessels calling at Mumbai, Cochin, Mormugao, New Manager and
Tuticorin in 2002-03. This reflects a drop from 19,318 tourists
in 2001-02 and a significant drop from 40,287 tourists in
2000-01. Last season, the Iraq War and the SARS epidemic forced
many liners to change itinerary or bypass Indian ports, resulting
in just a dozen liners calling at Indian ports. This season
there has been some improvement, with double the number of
liners including India in their itinerary.
Large cruise lines such
as Queen Elizabeth II, Silver Shadow Deutshland, Seaborne
Spirit, Europa and Star Princess are reportedly visiting Indian
ports during the cruise season that commences in November
2003 and ends in April 2004.
According to Section 407
(i), no ship other than an Indian ship or a ship chartered
by a citizen of India shall engage in the coasting trade of
the India except under a licence granted by the director-general
shipping. Clause 3 allows the Centre powers to revoke this
provision for any part of India's coasting trade by a general
or special order.
The term 'coasting trade
of India' means the carriage by sea of passengers or goods
from any port or place in India to any other port or place
on the Indian subcontinent. With these fresh incentives, especially
the relaxation of existing cabotage laws, cruise tourism in
India appears set for better days ahead.
